Fisker needs money for HQ; employees file lawsuit

Fisker Automotive plans to close its Anaheim headquarters if it doesn't find a buyer or more financing, the company said in a mass-layoff notice filed with the state.

The notice was dated April 5, the same day the maker of the $100,000 Karma hybrid automobile laid off roughly 160 of its 219 remaining employees. Federal and state laws require companies to give at least 60 days of notice or 60 days of pay in a major layoff, which in California is defined as 50 or more employees over 30 days.

That same day, a federal lawsuit seeking to recover 60 days of wages and benefits was filed on behalf of the laid-off employees in U.S. District Court in Santa Ana. Jack Raisner, one of the attorneys representing former Fisker employees, said several dozen employees have contacted the firm.

A Fisker spokesman had no immediate comment. In its filing with the California Employment Development Department, the company said, "Fisker would have preferred to provide affected employees with earlier notice of this potential shutdown; doing so, however, would have undermined our ongoing efforts to sell our business or secure financing that would have allowed us to avoid this situation."

The automaker said it could not give a precise date for when it will close the Anaheim building because it is still seeking a buyer or additional financing.

"Because these matters are still very much up in the air, we cannot precisely indicate when the closure would occur," Fisker said.

The filing said the office would close on or around the first half of June. In addition to the Friday layoffs, many of Fisker's remaining 59 employees are on furlough through April 15, the company said.

Fisker had raised $1.2 billion in private money and secured a $529 million loan from the U.S. Department of Energy. The loan was cut off by the federal government in 2011, however, after the first $193 million because the automaker failed to meet required production and sales milestones.

The automaker had more than 600 employees in February 2012 but began layoffs when it hit a series of roadblocks – faulty batteries, car fires, supplier bankruptcy and the departure of its founder, Henrik Fisker, among them. That left the company cash-strapped and looking for new investors, partners or owners.

Fisker hired Huron Consulting to run day-to-day operations in January while CEO Tony Posawatz pursued partnerships and fundraising. According to the Wall Street Journal, the company has hired Kirkland & Ellis to explore a possible bankruptcy filing.